Hiding Money
- Thread starter mememe
- Start date
All registered business are 'numbered'. You need this in order to have a bank account for the company, and to accept payments directly to the company (and to accept credit card payments). A nice name is optional.
Hiding assets or hiding income?
Assets can be hidden by just not disclosing them.
Income can be hidden by
- working for cash/barter, and not reporting it to CRA.
- if self-employed , he can choose to leave his company's earnings within the company, instead of drawing it out as income. So it requires full disclosure of the company's books to determine if the company is 'retaining (excess) earnings' compared to what it needs to cover expenses.
- if he's salaried, but is a director in the company, then he may be able to influence how much $ is being paid in salary.
- exaggerating / falsifying employment-related expenses to reduce his taxable income (particularly if he does a lot of travel for his job).
Hiding assets or hiding income?
Assets can be hidden by just not disclosing them.
Income can be hidden by
- working for cash/barter, and not reporting it to CRA.
- if self-employed , he can choose to leave his company's earnings within the company, instead of drawing it out as income. So it requires full disclosure of the company's books to determine if the company is 'retaining (excess) earnings' compared to what it needs to cover expenses.
- if he's salaried, but is a director in the company, then he may be able to influence how much $ is being paid in salary.
- exaggerating / falsifying employment-related expenses to reduce his taxable income (particularly if he does a lot of travel for his job).
Last edited:
arabian
New member
90% of the time the money is hidden with the help of family or friends. If your ex has a company all he has to do is pay the relative a wage, then the relative pays it to him, under-the-table, for a fee. Joint bank accounts are a favorite as is utilizing a line-of-credit in someone else's name (kind of like money laundering). Banks go to great lengths to protect their client's so you need to be well-armed with court orders to get through the nonsense. It is time-consuming and the perpetrator knows this. There are many banking laws that even the government has to adhere to.
The old expression "follow the money" is extremely important. If you can get bank statements where transfers of money are indicated then that is quite helpful.
This is why I tell people who are in court, with someone who is self-employed, to insist on and pay very close attention to business bank statements. Sometimes an absence of a normally recurring expense is an indicator as well.
Without bank statements from a business you're kind of pissing against a tree in the wind.
The old expression "follow the money" is extremely important. If you can get bank statements where transfers of money are indicated then that is quite helpful.
This is why I tell people who are in court, with someone who is self-employed, to insist on and pay very close attention to business bank statements. Sometimes an absence of a normally recurring expense is an indicator as well.
Without bank statements from a business you're kind of pissing against a tree in the wind.